Early on Friday, WTI crude oil is trading bullish over rising optimism in the markets that the US and China may indeed be getting close to signing the phase one trade deal. At the time of writing, WTI crude oil is trading around $59.46 per barrel, the highest level in three months.

On Thursday, officials confirmed that the Trump administration will consider suspending some tariffs on Chinese imports in exchange for China agreeing to increase farm purchases from the US next year. Although no official statement has been made on this, markets cheered and crude oil turned upbeat on hopes for some possible resolution towards the trade war.

However, crude oil prices remained under pressure and the gains were capped after an IEA report forecast higher supply into next year despite OPEC’s latest production curbs. Higher supply in the face of weaker demand is likely to keep the crude oil market under pressure into 2020, notwithstanding the recent trade optimism.